ASSOCIATION NEWS
Greystar Acquires Riverstone - What’s Next?
by Paul Bergeron, naa
W
THE NEW MANAGEMENT COMPANY NOW OVERSEES 70
COMMUNITIES REPRESENTING OVER 17,500 UNITS
ith the goal of becoming better—
not just bigger—the two largest
property management companies
joined forces in June when Greystar
Real Estate Partners acquired Riverstone Residential Group from London-based CAS Capital
Limited, a wholly owned subsidiary of Regis Group
PLC, owned by Nick and Peter Gould.
The company, which will continue under the
name “Greystar,” comprises more than 385,000
apartment units nationwide, more than 17,500
locally, making it the biggest management company in Metro Denver, followed by Apartment
Management Company at #2.
Unofficially, that puts it at more than twice the
size of the second-largest management company,
Lincoln Property Company, with approximately
153,000 units, with Pinnacle third at 132,000,
according to the 2014 NMHC Top 50 ranking of
apartment management firms.
Terms were not disclosed. The merger was first
reported by MFE.
Greystar Chairman and CEO Robert Faith
says both companies will continue to operate in a
“business-as-usual” fashion. “Executive leadership,
job titles and lines of reporting will remain the
same,” Faith says. “There are great people working
at both companies. This deal enables both companies to bring it all together into one.”
He says the companies have begun a “shared
best practices process” and they will proceed with
a slow and deliberate” transition.
Nationally, the company’s new workforce now
totals approximately 10,000 staff members. They
38
COMMUNITIES (METRO DENVER)
10,250
UNITS (METRO DENVER)
were notified earlier this summer through a series
of telephone conferences and meetings.
Supervisors then passed the news down within their communities, accordingly, Faith says.
Faith says the timing for the deal, which he
says originated in December with conversations
between he and the Goulds, is right.
“All signs indicate to us that the multifamily
sector is healthy and will remain that way for some
time,” Faith says. “And when you get deeper and
deeper into a positive real estate cycle, it becomes
more and more difficult to find talented people.
With this deal, we have done that. It will be the
best of the best from both companies.”
10 Largest Management Companies
(based on local unit count)
Company
Units
1. Greystar/Riverstone
17,631
2. Apartment Mgnt Consultants
10,140
3. Equity Residential
6,933
4. Bridge Property Mgmt
4,990
5. Echelon Property Group
4,585
6. Alliance Residential
4,332
7. JRK Residential Group
3,995
8. Simpson Property Group
3,875
9. Holland Partner Group
3,784
10. Fairfield Residential
3,664
www.aamdhq.org
‘THE BIG LEAP WE
NEEDED’
Both companies have been
through the acquisition process often.
Riverstone Residential Group Chief
Executive Officer Terry Da